Gautam Adani-backed Adani Enterprises is set to launch its follow-on public offer (FPO) of 20,000 crore rupees on January 27. The much anticipated FPO which has been in the works since last year is expected to impact the rates of Adani Enterprises’ stocks in the market. When an organization that is already listed either makes a new issue of shares or convertible securities to the people or a sale offer to the public, then the said company can apply for an FPO.
The previous week, on Friday, the stock price of Adani Enterprises closed at 3,450.40 rupees each on the BSE, fractionally less as compared to the previous session. The market cap of Adani Enterprises is approximately 3,94,029.99 crore rupees. The Indian conglomerate is currently offering a discount ranging from 5% to 10% on the equity shares listed under the FPO. The proposal comes at a time when questions have been raised about Adani’s burgeoning debt levels and large promoter shareholding. According to CreditSights, a debt research firm, Adani would continue to build strategic equity partnerships despite concerns over the entity’s debt levels.
A total of 6,47,38,475 shares will be offered to investors under the FPO. The minimum floor price for the FPO is fixed at 3,112 rupees per equity share with the cap price being 3,276 rupees per equity share for all types of investors. A discount of 64 rupees per FPO equity share can be availed by retailers auctioning under the retail category of the offer. The list of book-running lead managers for the FPO includes ICICI Securities, SBI Capital Markets, Axis Capital, Jefferies India, IDBI Capital Markets & Securities, BOB Capital Markets, IIFL Securities, JM Financial, Elara Capital (India), Monarch Network Capital.